Index of Production
Manufacturing: 1.0% quarterly fall
Index of Manufacturing, 2002=100
Manufacturing output decreased by 1.0 per cent in the fourth quarter of 2005 compared with the third quarter, with seven out of the thirteen subsectors showing decreases in output, four showing increases and two subsectors unchanged in the quarter.
There were significant decreases in output in the transport equipment industries, where output decreased by 4.6 per cent, the electrical and optical equipment industries, where output decreased by 2.7 per cent and in the paper, printing and publishing industries, where output decreased by 1.6 per cent. The only significant increase in output in the quarter was of 1.5 per cent in the machinery and equipment industries.
Overall production output decreased by 0.8 per cent in the fourth quarter of 2005. Within production the 1.0 per cent decrease in manufacturing output was offset by increases of 0.1 per cent in the energy supply sector and 0.4 per cent in the mining and quarrying sector. The increase in mining and quarrying output was mainly due to increased gas extraction. Temperatures were much lower than average in both November and December which increased the domestic demand for gas for heating purposes.
Between November and December, manufacturing output increased by 0.3 per cent, with output rising in nine of the thirteen subsectors and falling in just four subsectors. The only significant increase was in the chemicals and man-made fibres industries (1.5 per cent) and the only significant decrease this month came in the electrical and optical equipment industries (down 1.8 per cent).
The overall Index of Production increased by 0.2 per cent between November and December. Mining and quarrying output increased by 0.6 per cent, while energy supply output decreased by 0.5 per cent in December. Within energy supply the only decrease was in gas supply and this was due to reduced commercial gas usage following large prices rises.
For 2005 as a whole, production industries' output was 1.7 per cent lower than in 2004. Within this, manufacturing output decreased by 0.8 per cent in 2005 compared with 2004, electricity, gas and water supply decreased by 1.1 per cent and mining and quarrying output fell by 8.7 per cent.
Notes: Figures discussed are based on chained volume measures (i.e. have been adjusted for the effects of price change) and are seasonally adjusted.
Manufacturing consists of 14 sub-sectors (listed below with the percentage of the total they account for). For IoP purposes DB and DC are combined as they are both small. The larger the percentage contribution, the more likely the impact on the overall manufacturing growth rate will be significant.